Daily Market News - 1st August

Friday’s market movers
•    German Retail Sales (YoY) and EU Consumer Price Index (YoY) both came out negatively which kept the Euro sluggish in the EU morning session.

•    From the UK, we had quite a few positive data: Nationwide Housing Prices, Consumer Credit, and Mortgage Approvals. All of them performed better in June than the previous month and the market consensus. The pound found the weekly support from it, trading mildly in the morning.

•    The biggest movement was in the US session. With a massive US dollar weakness, both EURUSD and GBPUSD jumped 1.2%. Apart from the debt ceiling concerns – Obama’s Press Conference seems not relieving the dollar weakness, the fundamental data showed the domestic economy is not optimistic. Real Personal Consumption Expenditures (QoQ), GDP Annualized, and Chicago Purchasing Managers' Index are all worse than the expectation.

Today’s market movers
•    Both German and EU PMI Manufacturing are coming out this morning with a worse than previous expectation while EU Unemployment Rate is predicted to be unchanged at 9.9%. These might keep the Euro remain a sluggish morning performance.

•    UK PMI Manufacturing is to be released with a slight drop according to the market consensus. Since UK economy growth concerns is the biggest topic now in the country, every negative data will probably push the Sterling holders to sell and devalue the pound.

In the US ISM Prices Paid, Construction Spending (MoM) and ISM Manufacturing are due to come out with pessimistic predictions. This will probably slow down the US dollar strengthening this morning which is caused by the Debt Plan release by Obama.